(November 17, 2009) Local chambers from around California gathered at the California Chamber of Commerce office in Sacramento on Friday to discuss the basic nuts and bolts of establishing political action committees (PACs) and independent expenditure committees (IECs).
Co-hosted by the CalChamber Public Affairs Department and Local Chamber Relations Department, the day-long workshop focused on the legal issues and requirements associated with PACs and IECs, the 2010 legislative elections and fundraising strategies.
In a very general sense, a PAC is a committee that receives limited contributions from third parties for the purpose of making contributions directly to support candidates for elected office.
An IEC is also a political action committee that receives contributions from third parties, but unlike a PAC, an IEC has no contribution limitations and may spend unlimited money to support or oppose state and/or local candidates, provided such expenditures are made independent of the candidates. IECs may spend money on mailings, television or newspaper ads, as opposed to making a contribution directly to a candidate.
Steve Snyder, CalChamber vice president of local chamber relations, presided over the day’s gathering
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| Brian T. Hildreth, a partner with Bell, McAndrews & Hiltachk, LLP |
Brian T. Hildreth, a partner with Bell, McAndrews & Hiltachk, LLP, opened the program with a legal overview on establishing PACs and ICEs. Specifically, Hildreth elaborated on the two state agencies that are primarily responsible for administering the campaign disclosure process — the Fair Political Practices Commission (FPPC) and the Secretary of State Political Reform Division. Hildreth explained that organizations have many choices when it comes to political action and that it is crucial for them to select the right type of committee that meets their goals.
In addition to the committee organization, he discussed bank accounts, reporting requirements and the importance of considering professional organization assistance. Hildreth reminded the local chambers that they need to address local campaign rules and limits, as local jurisdictions also may have their own contribution limits or other rules.
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| Robert Lapsley, CalChamber vice president of public affairs |
Following Hildreth’s presentation, Robert Lapsley, CalChamber vice president of public affairs, discussed the 2010 legislative races. Lapsley focused on participating in legislative races that can bring more business-friendly moderate Democrats to the Legislature. He also talked about the importance of preserving checks and balances within the Legislature and monitoring targeted legislative races in an effort to avoid any single party capturing two-thirds of the seats in either the Assembly or the Senate.
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| CalChamber President and CEO Allan Zaremberg |
CalChamber President and CEO Allan Zaremberg was theluncheon keynote speaker. He talked with the attendees about the general political climate in California and specifically looked at whether the Democrats can get to a two-thirds veto-proof majority and the impact that would have on California businesses. Zaremberg also discussed the state deficit, its growth and the timeframe in which California may start to expect an economic recovery.
After lunch, Justin Matheson, a partner with Aim-Point, discussed PAC fundraising strategies. Matheson told the attendees that the key to fundraising is to focus on creating PAC programs that continuously recognize levels of involvement. He recommended several activities to entice donors and the importance of communication and branding plays in growing a PAC.
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| Justin Matheson, a partner with Aim-Point |
The day closed with a panel on first-hand PAC experiences, successes and challenges, moderated by Lapsley. Panelists included Michael Faust from the Sacramento Metro Chamber, Al Smith from the Greater Fresno Chamber and Nancy Lindholm from the Oxnard Chamber of Commerce.
Attendees also received a copy of the second edition of the CalChamber Political Action Handbook: Key Strategies for Business Success in State and Local Elections. More information on the handbook and PACs and ICEs can be found on the Public Affairs Council webpage.
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| Panelists from left to right: Nancy Lindholm from the Oxnard Chamber of Commerce, Michael Faust from the Sacramento Metro Chamber and Al Smith from the Greater Fresno Chamber |